Nebraska Paid Millions in Tax Breaks to Ineligible Companies

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According to a report from Nebraska State Auditor Mike Foley, the state has paid out millions of dollars in tax breaks through the Nebraska Advantage Act and ImagiNE Nebraska Act to companies that no longer qualified for the incentives. Over the past four years, these two tax incentive programs have cost the state an estimated $1.2 billion in lost tax revenue.

Why it matters

The findings raise concerns about the oversight and accountability of these major economic development programs, which were intended to attract and retain businesses in Nebraska. The lack of proper monitoring and enforcement could mean taxpayer money is being misspent on companies that are no longer meeting the requirements.

The details

Foley's audit found that some companies continued to receive tax credits and incentives even after they failed to meet the job creation, investment, or other benchmarks required under the programs. In some cases, companies had moved out of state or downsized their Nebraska operations, but were still able to claim the tax breaks.

• The Nebraska Advantage Act and ImagiNE Nebraska Act have been in place for the past four years.
• Foley's audit was conducted and released in February 2026.

What’s next

The Nebraska Legislature is expected to review the audit findings and consider reforms to improve oversight and accountability for the state's business incentive programs.